Why cognitive dissonance ruins good investing decisions

When your brain starts lying to you

You make a bad trade. Then tell yourself it wasn’t that bad.

Maybe it was “just bad timing” or “the market overreacted.”

But deep down, you know it. You messed up.

This mental trick has a name. It’s called cognitive dissonance.

When your actions and your self-image don’t align, your brain rushes to close the gap.

Not by changing the behavior, but by changing the story.

And investing is full of these stories.

You hold a loser because selling would admit you were wrong.

You call it “long-term conviction” while ignoring all the signs.

You break your own rule and call it “being flexible.”

It feels better than facing the truth. But it costs more than you think.

Cognitive dissonance is part of being human.

But if you don’t manage it, it will quietly destroy your strategy from the inside.

Let’s make your decision-making bulletproof.